SaleSmart Co

Statement of Financial Position

As at 31st December
Current year Previous year
in USD million Note Y3 Y2 Y1

ASSETS
Non-current assets
Property, plant and equipment 5 107,099 105,050 104,077
Intangible assets 7 1,346 1,209 849
Deferred tax assets 16 691 642 719
Loans granted 9 1,198 368 318
Total non-current assets 110,334 107,269 105,963

Current assets
Inventories 10 25,369 23,758 23,432
Trade and other receivables 11 26,247 24,617 26,115
Marketable securities 9 3,346 3,129 3,045
Cash and cash equivalents 12 15,945 9,497 2,998
Total current assets 70,907 61,001 55,590
Total assets 181,241 168,270 161,553

EQUITY AND LIABILITIES

Capital and reserves attributable to owners
Common share capital 13 24,867 22,802 20,345
Additional paid-in capital 11,802 11,980 13,802
Retained earnings 61,141 50,504 40,390
Total owners' equity 97,810 85,286 74,537
Non-controlling interest 33,628 28,496 24,246
Total equity 131,438 113,782 98,783

Liabilities
Non-current liabilities
Long-term debt 14 16,982 20,994 25,781
Deferred tax liabilities 16 797 793 669
Retirement benefit obligations 15 522 421 377
Total non-current liabilities 18,301 22,208 26,827

Current liabilities
Short-term debt 14 12,492 14,022 17,970
Trade and other payables 18 18,699 18,096 17,802
Current income tax liabilities 311 162 171
Total current liabilities 31,502 32,280 35,943
Total liabilities 49,803 54,488 62,770
Total equity and liabilities 181,241 168,270 161,553

- - - Check!
SaleSmart Co
Statement of Comprehensive Income
For the Year Ended 31st December

Current year Previous year

in USD million Note Y3 Y2

Revenue
Sales revenue 19 191,504 172,829
Other revenue from operating activity 19 7,341 7,312
Total Revenue 198,845 180,141

Cost of goods sold (COGS) (150,292) (138,616)

Gross Profit 48,553 41,525

Administrative costs (5,349) (4,906)

Selling costs (17,612) (15,990)
Other costs (3,041) (2,032)
Total operating expenses (26,002) (22,928)

Operating profit (EBIT) 22,551 18,597

Interest expense 21 (2,725) (2,992)

Profit before tax (EBT) 19,826 15,605

Income tax expense 22 (2,128) (1,643)

Net income 17,698 13,962

Common shares outstanding 10,000 10,000

Common dividend per share ($) 0.88 0.65
Total dividends declared 8,800 6,500
Share price (in $) 2.95 2.15
Market capitalization 29,500 21,500
* lease payments = (2,281) (2,475)
 Ratio Current year (Y3)

annual sales 198,845 7.82

1. Receivables turnover = =
average receivables 25,432

365 365 46.68

2. Days of sales outstanding = =
receivables turnover 7.82

cost of goods sold 150,292 6.12

3. Inventory turnover = =
average inventory 24,564

365 365 59.66

4. Days of inventory on hand = =
inventory turnover 6.12

purchases 151,903 8.26

5. Payables turnover = =
average trade payables 18,398

365 365 44.21

6. Number of days of payables = =
payables turnover ratio 8.26

revenue 198,845 1.87

7. Fixed assets turnover = =
average net fixed assets 106,075

revenue 198,845 5.84

8. Working capital turnover = =
average working capital 34,063

revenue 198,845 1.14

9. Total assets turnover = =
average total assets 174,756

10. Cash conversion cycle = days of sales outstanding 46.68 = 62.13

+
plus: days of inventory on hand 59.66
-
less: number of days of payables 44.21

revenue 198,845 1.62

11. Equity turnover = =
average total equity 122,610
Previous year (Y2) Meaning

180,141 7.10 The efficiency of a company in collecting its trade

=
25,366 receivables

365 51.40 The average number of days a company takes to

=
7.10 collect its receivables from clients

138,616 5.87 The efficiency of a company in terms of inventory

=
23,595 management

365 62.13
= The average inventory processing period
5.87

138,942 7.74 The efficiency of a company in allowing trade credit * Purchases = ending inventory – beginning inventory +
=
17,949 to suppliers

365 47.15 The average number of days a company takes to

=
7.74 pay its suppliers

180,141 1.72
= The efficiency of a firm in utilizing its fixed assets
104,564

180,141 7.45 The efficiency of a firm in managing its

=
24,184 working capital (current assets - current liabilities)

180,141 1.09 The efficiency of a firm in using its total assets to

=
164,912 create revenue

51.40 = 66.37
+ The number of days a company takes to convert its
62.13 investments in inventory and other resources into
- cash flows from sales
47.15

180,141 1.69 The efficiency of a firm in utilizing equity to create

=
106,283 revenue
ventory – beginning inventory + cost of goods sold
 Ratio Current year (Y3) Previous year (Y2)

current assets 70,907 2.25 61,001

1. Current ratio = =
current liabilities 31,502 32,280

cash + marketable securities + receivables 45,538 1.45 37,243

2. Quick ratio = =
current liabilities 31,502 32,280

cash + marketable securities 19,291 0.61 12,626

3. Cash ratio = =
current liabilities 31,502 32,280

cash + marketable securities + receivables 45,538 94.28 37,243

4. Defensive interval = =
average daily expenditure 483 443
Previous year (Y2) Meaning

1.89 Ability to meet current liabilities

=
(with total current assets)

1.15 Ability to meet current liabilities

=
(with total current assets, excluding inventory)

0.39 Ability to meet current liabilities

=
(with cash and marketable securities only)

84.15 The number of days a company can cover its average

=
daily expenses with the use of current liquid assets only
 Ratio Current year (Y3)

total debt 29,474 22%

1. Debt-to-equity = =
total shareholder's equity 131,438

total debt 29,474 18%

2. Debt-to-capital = =
total debt + total shareholder's equity 160,912

total debt 29,474 16%

3. Debt-to-assets = =
total assets 181,241

earnings before interest and taxes 22,551 8.28

4. Interest coverage = =
interest payments 2,725

earnings before interest and taxes + lease payments 24,832 4.96

5. Fixed charge coverage = =
interest payments + lease payments 5,006

average total assets 174,756 1.43

6. Financial leverage = =
average total equity 122,610
Previous year (Y2) Meaning

35,016 31% Debt as a percentage of total

=
113,782 equity

35,016 24% Debt as a percentage of total

=
148,798 capital

35,016 21% Debt as a percentage of total

=
168,270 assets

18,597 6.22 The ability to cover interest

=
2,992 expenses

21,072 3.85 The ability to cover interest and

=
5,467 lease expenses

164,912 1.55 An indicator of a company's debt

=
106,283 financing usage
 Ratio Current year (Y3)

gross profit 48,553 24.42%

1. Gross profit margin = =
revenue 198,845

operating income (EBIT) 22,551 11.34%

2. Operating profit margin = =
revenue 198,845

EBT 19,826 9.97%

3. Pretax margin = =
revenue 198,845

net income 17,698 8.90%

4. Net profit margin = =
revenue 198,845

net income 17,698 10.13%

5. Return on assets (ROA) = =
average total assets 174,756

operating profit (EBIT) 22,551 12.90%

6. Operating return on assets (ROA) = =
average total assets 174,756

operating profit (EBIT) 22,551 14.56%

7. Return on total capital = =
average total capital 154,855

net income 17,698 14.43%

8. Return on equity (RoE) =
average equity 122,610
Previous year (Y2) Meaning

41,525 23.05% Gross profitability as a percentage of total

=
180,141 revenue

18,597 10.32% Operating profitability (before interest and

=
180,141 tax) as a percentage of total revenue

15,605 8.66% Operating profitability (before tax) as a

=
180,141 percentage of total revenue

13,962 7.75% Net profitability as a percentage of total

=
180,141 revenue

13,962 8.47% Net profitability (excluding interest and taxes)

=
164,912 as a percentage of total invested funds

18,597 11.28% Net profitability (including interest and taxes)

=
164,912 as a percentage of total invested funds

18,597 12.77% Operating profitability as a percentage of total

=
145,666 capital

13,962 13.14%
= Net profitability as a percentage of total equity
106,283
 Ratio Current year (Y3)

Net Income - preferred dividends 17,698 1.77

1. Earnings per share (EPS) = =
Outstanding number of common shares 10,000

Share price 2.95 1.67

2. Price earnings (P/E) ratio = =
Earnings per share (EPS) 1.77

Market capitalization 29,500 1.67

3. P/E ratio (company wide) = =
Net income 17,698

Dividend declared (per share) 0.88 30%

4. Dividend yield = =
Current share price 2.95

Net income - dividends declared 8,898 50%

5. Retention rate (RR) = =
Net income 17,698

Dividends declared 8,800 50%

6. Dividend payout = =
Net income 17,698

7. Sustainable growth rate (g) = RR x ROE 7%

Previous year (Y2) Meaning

13,962 1.40
= Income earned per 1 common share outstanding
10,000

2.15 1.54 The price that investors are willing to pay per $1 of
=
1.40 earnings

21,500 1.54 Total price that investors are willing to pay for a
=
13,962 company's Net income

0.65 30% The "portion "of a share price that is distributed as

=
2.15 dividends

7,462 53% The "portion" of Net income that is reinvested in the

=
13,962 company

6,500 47% The "portion" of Net income that is distributed as

=
13,962 dividends

7% Equity growth rate

 SaleSmart Co
Category Multiple Previous year Current year Procter & Gamble (P&G)

Days of sales outstanding 51.4 46.7 26.7

Days of inventory on hand 62.1 59.7 52.7
Activity Ratios Number of days of payables 47.2 44.2 48.0
Cash conversion cycle 66.4 62.1 31.4
Total asset turnover 1.09 1.14 0.6

Current ratio 1.9 2.3 0.8

Liquidity RatiosQuick ratio 1.2 1.4 0.6
Cash ratio 0.4 0.6 0.4

Debt-to-equity 31% 22% 63%

Solvency RatiosDebt-to-capital 24% 18% 30%
Financial leverage 1.6 1.4 2.7

Gross profit margin 23.1% 24.4% 49.8%

Operating profit margin 10.3% 11.3% 9.8%
Profitability Ratios
Net profit margin 7.8% 8.9% 6.5%
Return on equity (RoE) 13.1% 14.4% 10.4%

EPS 1.4 1.8 1.8

Valuation Ratios
P/E ratio 1.5 1.7 62.2
Share price 2.15 2.95 114.4
Industry average

31.2
50.3
44.1
37.4
1.0

1.4
1.0
0.5

55%
28%
1.9

29.5%
13.2%
9.8%
14%

1.83
25.5
46.7
 Base-case Previous
scenario previous Previous
year year Current year
in USD million Y1 Y2 Y3 Y4 Y5 Y6 Y7

Revenue 163,196 180,141 198,845 216,550 235,850 256,892 279,835

Growth % 10% 10%
COGS (127,847) (138,616) (150,292) (162,951) (176,677) (191,559) (207,695)
Growth % 8% 8% 8% 8% 8% 8%
Gross Profit 35,349 41,525 48,553 53,599 59,173 65,333 72,140
Growth % 17% 17%
Gross profit margin 21.7% 23.1% 24.4% 24.8% 25.1% 25.4% 25.8%
% change 1.4% 1.4% 1.4% 1.4% 1.4% 1.4%

Worst-case Previous
scenario previous Previous
year year Current year
in USD million Y1 Y2 Y3 Y4 Y5 Y6 Y7

Revenue 163,196 180,141 198,845 215,594 233,754 253,444 274,792

Growth % 10% 10%
COGS (127,847) (138,616) (150,292) (162,951) (176,677) (191,559) (207,695)
Growth % 8% 8% 8% 8% 8% 8%
Gross Profit 35,349 41,525 48,553 52,643 57,077 61,885 67,098
Growth % 17% 17%
Gross profit margin 21.7% 23.1% 24.4% 24.4% 24.4% 24.4% 24.4%
% change 1.4% 1.4% 0.0% 0.0% 0.0% 0.0%

Best-case Previous
scenario previous Previous
year year Current year
in USD million Y1 Y2 Y3 Y4 Y5 Y6 Y7

Revenue 163,196 180,141 198,845 219,134 241,760 267,043 295,356

Growth % 10% 10%
COGS (127,847) (138,616) (150,292) (162,951) (176,677) (191,559) (207,695)
Growth % 8% 8% 8% 8% 8% 8%
Gross Profit 35,349 41,525 48,553 56,183 65,083 75,483 87,661
Growth % 17% 17%
Gross profit margin 21.7% 23.1% 24.4% 25.6% 26.9% 28.3% 29.7%
% change 1.4% 1.4% 5.0% 5.0% 5.0% 5.0%
 Y8

304,852

(225,189)
8%
79,663

26.1%
1.4%

Y8

297,939

(225,189)
8%
72,750

24.4%
0.0%

Y8

327,138

(225,189)
8%
101,948

31.2%
5.0%
2-Way DuPont Analysis RoE = net profit margin x equity turnover

net income net income revenue

= x
average equity revenue average equity

Current year (Y3): 14.43% = 8.90% x 1.62

Previous year (Y2): 13.14% = 7.75% x 1.69

3-Way DuPont Analysis RoE = net profit margin x asset turnover x financial leverage ratio

net income net income revenue average total assets

= x x
average equity revenue average total assets average equity

Current year (Y3): 14.43% = 8.90% x 1.14 x 1.43

Previous year (Y2): 13.14% = 7.75% x 1.09 x 1.55

5-Way DuPont Analysis RoE = tax burden x interest burden x operating profit margin x

net income net income EBT EBIT

= x x x
average equity EBT EBIT revenue

Current year (Y3): 14.43% = 89% x 88% x 11.34% x

Previous year (Y2): 13.14% = 89% x 84% x 10.32% x
 asset turnover x financial leverage ratio

revenue average total assets

x
average total assets average equity

1.14 x 1.43
1.09 x 1.55
 Current year Previous year
Formula Weight Ratio Result Ratio
1.2 × (Current assets – Current liabilities)/Total assets + 1.2 0.22 0.26 0.17
1.4 × (Retained earnings/Total assets) + 1.4 0.34 0.47 0.30
3.3 × (EBIT/Total assets) + 3.3 0.12 0.41 0.11
1.0 × (Sales/Total assets) 1.0 1.10 1.10 1.07
0.6 × (Market value of stock/Book value of liabilities) + 0.6 0.59 0.36 0.39
Total Z-score 2.60
Previous year
Result Category
0.20 Liquidity
0.42 Solvency
0.36 Profitability
1.07 Activity
0.24 Valuation
2.30
 Current year Previous ye
Revenue Gross profit Gross profit margin Revenue
Personal care 42,980 7,134 17% 32,980
Home care 33,600 6,800 20% 30,600
Pharmaceuticals 15,233 3,679 24% 14,273
Leisure and entertainment 20,190 8,350 41% 19,020
Baby & Kids 86,842 22,590 26% 83,268
Total 198,845 48,553 24.42% 180,141

Current year Previous ye

Revenue Gross profit Gross profit margin Revenue
Americas 127,855 27,134 21% 113,268
EMEA 44,600 10,822 24% 40,600
Asian Pacific 26,390 10,597 40% 26,273
Total 198,845 48,553 24.42% 180,141
 Previous year
Gross profit Gross profit margin GPM Change
5,401 16% 0.2%
5,460 18% 2.4%
3,370 24% 0.5%
7,344 39% 2.7%
19,950 24% 2.1%
41,525 23.05% 1.4%

Previous year
Gross profit Gross profit margin
20,401 18%
9,760 24%
11,364 43%
41,525 23.05%